The traffic light government's economic policy was critically assessed at half-time: energy transition and subsidized industrial electricity prices were highly controversial

The traffic light government's economic policy was critically assessed at half-time: energy transition and subsidized industrial electricity prices were highly controversial

The latest panel of economists from the Ifo Institute and the FAZ shows that several economics professors are critically assessing the traffic light government's economic policy at half-time. Energy policy decisions, such as the nuclear phase-out and subsidized industrial electricity prices, are particularly controversial. According to the panel participants, these energy policy projects of the traffic light parties are viewed particularly critically. The final abandonment of nuclear energy after the Russian war of aggression is rejected by 58 percent of those surveyed, while only 38 percent are in favor. It is criticized that the nuclear phase-out meant that a climate-friendly energy source was switched off and that high energy prices were affecting international location competition. The proposal for a subsidized industrial electricity price and the new heating law are also met with rejection. A full 83 percent of the participating economists reject the subsidized industrial electricity price because it could reduce companies' incentive to be more energy efficient and could lead to permanent subsidies from the state. The new heating law was rejected by 60 to 32 percent. However, there is a certain level of support for the planned increase in the minimum wage from 12.00 to 12.41 euros per hour on January 1, 2024. 64 percent of those surveyed are in favor of this, while 29 percent are against it. Overall, the traffic light government's economic policy was given a school grade of 4.0 at half-time. Economists hope for a different direction in key policy areas.

According to a report by www.hasepost.de, several economics professors have critically assessed the economic policy of the traffic light government. Energy policy projects such as the nuclear phase-out and subsidized industrial electricity prices are particularly controversial. The impact of these decisions can be far-reaching. The nuclear phase-out means that a climate-friendly energy source is switched off and high energy prices influence international location competition. This could have negative effects on the competitiveness of German industry. The subsidized industrial electricity price would reduce the incentive for energy-saving production and possibly lead to permanent government subsidies. This could put pressure on the financial sector and have an impact on the market. The rejection of the new heating law indicates that the planned measures to save energy and reduce environmental pollution do not meet with the approval of economists. Increasing the minimum wage, on the other hand, could have positive effects on income distribution and consumption. Overall, the critical assessment of the traffic light government's economic policy shows that there is a need for action in important political areas in order to increase the satisfaction and trust of financial experts.